U.S. stocks decline due to weak economic foreshadowing by Fed

S&P 500’s four-day rally ends after Fed’s weak view

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Today – Wednesday October 30th 2013

  • Today U.S. stocks drop after the Federal Reserve announced it will continue it’s monthly stimulus of $85Billion, but that statement did not seem to impress the investors. Markets dropped due the Fed forecasting weak economic growth for the rest of the year for the economy.
  • Data based on payrolls showed companies added fewer workers than projected in October, adding to signs that growth slowed in the weeks before the shutdown. The government closure will reduce economic growth by 0.3 percentage points this quarter at an annual rate, according to a Bloomberg News survey of economists.
  • Markets fell on concerns the Fed may still pullback on its stimulus program in December, or early next year. In a policy statement, the central bank said that overall all “the downside risks to the outlook for the economy and the labor market” …. have “diminished,” indicating that the worst of the 2009 recession, which prompted the stimulus program has passed.
  • TheS&P 500closed down 0.49% to 1,763.30. TheDow Jones Industrial Averagelost 0.39% to 15,618.64, while theNasdaqdropped 0.55% to 3,930.62.
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Categories: Capital Markets

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